Saturday, May 27, 2023

Dividend Increase - Canadian Imperial Bank of Commerce (CM)


Thursday, May 25th the Board of Directors of Canadian Imperial Bank of Commerce (CM) announced a quarterly dividend increase of from C$0.85 to C$0.87 per share that’s payable July 28, 2023 to holders of record June 28, 2023. This represents a 2.35% increase over the last quarterly dividend.

With current price C$57.54 (yesterday's close), this raise brings their dividend yield to 6.05%.

CIBC is a member of Canadian Dividend All Star List with a 13 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.7, 5.3, 5.2 and 6.1 (Canadian Dividend All-Star List)

Since I own 140 shares of CIBC, this will increase my portfolio's projected annual net dividend income by $6.12.

Canadian Imperial Bank of Commerce last raised its dividend in December 2022, so it looks like the pre-pandemic era is back and the dividend will probably rise again twice a year. If that's going to happen, then I'm relative fine with this increase.

This is the 7th dividend increase I received from CM since initiating a position December 2018. During this period, the quarterly dividend has increased moderately from $0.68 to $0.87, or 27.9%

This increase raises my YOC to 7.54%.

Summary of 2023 Dividend Increases / Cuts

Click here to see my portfolio holdings.

You can follow the development of my dividends here.

Full Disclosure: Long CM

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